Summary of

A Comprehensive Reuse Strategy for the NWIRP at Calverton, Riverhead, Long Island
March 1996

In 1996, a Comprehensive Reuse Strategy for the NWIRP at Calverton (hereinafter the 1996 Reuse
Strategy) was issued. This 1996 Reuse Strategy includes a Calverton master development plan for the
subject property that is intended to create a marketable tool to attract private development and that:

As a blueprint for future growth, it provi des a basi s for all land use deci sion making and for the adoption
of zoning regulations

The Calverton master plan environs a multi-use enterprise park that has a major industrial complex as its
focus, but is intended to be flexible depending on the market and economic conditions. This master plan
was never implemented and the existing zoning has not been changed by the Riverhead Town Board to
reflect its recommendations.

In 1994, ownership of the NWIRP Calverton property was conveyed from the United States Navy (U.S.
NAVY) to the Town of Riverhead Community Development Agency (CDA). As part of the legislation, it
was required that the CDA formulate an economic development-based reuse strategy for the subject
property.

The Town of Riverhead proceeded to form the Calverton Air Facility Joint Planning and Redevelopment
Commission (hereinafter the Reuse Commission), composed of various officials from the Town of
Riverhead, surrounding townships, Suffolk County, New York State, the Federal government, and civic
organizations, to articulate a vision for the future reuse of the property. The Reuse Commission
identified four primary goals for reuse of the NWIRP Calverton property, which included:

1. Attract pri vate investment

2. Increase the tax base

3. Maximize job creation

4. Enhance regional quality of life (Page 5)

In order to achieve these goals, the Reuse Commission envisioned an eight-part mission, as follows:

1. To provide for i ndustrial land use i n conformance with the Town of Ri verhead Master Plan and its
amendments.

2. To provide for a new zoning use district regulating the site which will encourage the highest and best adaptive
reuse of the property with the greatest potential for economi c development whil e respecting the ecology of the
area.

3. To encourage appropriate i ndustrial and commercial development in order to accommodate regional growth
influences.
1

4. To encourage specificall y those types of i ndustrial, commercial and recreational uses, which are i ntegrated with
the overal l economic development policy of the Town of Ri verhead.

5. To attract industrial development to an area which i s economically and envi ronmentally feasi ble for
development due to exi sting i nfrastructure and other improvements.

6. To provide for i nfrastructure i mprovements desi gned to miti gate against the degradation of the Peconic Estuary
and the Central Suffolk Pine Barrens

7. To examine continued aviation uses in support of on-site commercial/industrial development.

8. To identify and attract those enterpri ses and technologi es which will generate employment of high skil l level s,
apprenticeshi p programs, and lower skill support employment in order to replace the economic activity
previousl y existi ng at the site. (Page 5).

Based on the aforementioned goals and eight-part mission formulated by the Reuse Commission, a reuse
strategy was developed, and, in 1996, a Comprehensive Reuse Strategy for the NWIRP at Calverton
(hereinafter the 1996 Reuse Strategy) was issued.

The 1996 Reuse Strategy involved three separate phases, including:

Phase One: Opport uni t i es and Const rai nt s Anal ysi s: During thi s initial phase, the team developed a detailed
understanding of the physical, envi ronmental, and economic factors that wil l affect the redevelopment of the
[NWIRP Cal verton property]. These anal yses were then evaluated i n terms of thei r potential benefit or detriment to
the successful reuse of the facil ity.

Phase Two: Eval uat i ng Reuse Scenari os: Based upon the phase one anal yses, and substantial input from the
community, the team crafted three potential scenarios for redevelopment of the Calverton facility. Each scenario
retained the existi ng i ndustrial core. The thrust of the three scenarios were: An entertainment/tourism compl ex, an
aviation-based industrial park, and a reti rement community. Each scenario was evaluated in terms of economic,
physical, and policy consi derations. The appendices include an in-depth di scussion and analysis of these scenarios.

Phase Three: Devel opi ng a Mast er Reuse St rat egy: The final phase of thi s process call ed for the reconcil iation of
the three scenarios i nto a recommended plan. Drawi ng upon input from the community and el ected official s, and
based upon the market and physical eval uations, the team developed a recommended reuse strategy. Thi s strategy
was presented in a seri es of outreach sessions, and, with modifications based on feedback, provided the basi s of this
document. (Page 7).

A summary of each phase is presented below.
2
Phase One
Phase One of the 1996 Reuse Strategy included a comprehensive assessment of existing conditions at and
surrounding the NWIRP Calverton property, including physical characteristics of the NWIRP facilities at
the NWIRP Calverton property, transportation systems, zoning, and the economic and market context for
reuse. The economic and market context portion evaluated aviation-based, industrial and office, retail,
residential, and leisure and tourism markets to determine what type of development, or combination
thereof, would constitute the highest and best reuse of the NWIRP Calverton property in an economic
context. The study concluded that industrial and office uses, as well as the leisure and tourism uses, were
best suited at the NWIRP Calverton property, that aviation-based and retail uses would be best suited as
ancillary to other major uses, and that residential uses would not be appropriate.

Based upon the findings of Phase One, the 1996 Reuse Strategy determined the NWIRP Calverton
property offered the following strengths:

1. Extremely well-buffered (mini mized impacts of noise levels and industrial/commercial activity upon residential
areas).

2. An accepted and wi del y supported history of i ndustrial acti vity on site, together with well-maintained support
infrastructure.

3. Large size. Multi pl e development parcels with tremendous flexi bil ity.

4. Potential for on-site energy generation.

5. Municipal ownershi p provi di ng incenti vized busi ness costs.

6. High-profile opportunity for New York State to advance economic development goal s of j ob growth and new
business investment.

7. Geographicall y positioned to take maximum advantage of well establi shed roadways and rai lroad facilities.
(Page 19).
Phase Two
Phase Two of the 1996 Reuse Strategy consisted of formulating a Master Plan for the reuse of the NWIRP
Calverton property and supporting the proposed best-suited uses through an explanation of the benefits,
primarily economic and fiscal in nature, which could be realized if implemented. The 1996 Reuse Strategy
articulated the vision for the reuse as a multi-use enterprise park that has at its core a major industrial
complex. This reuse of existing facilities is augmented with a land allocation that builds upon the
emerging leisure and tourism economy of the East End (Page 20).

Three major organizing elements were identified regarding the proposed land use plan, which included:

3
1. Preservation of the Pine Barrens Core Area (legislatively mandated).

2. Retention of major runway facilities (due to the fact that they are virtually irreplaceable resources).

3. Reuse of the industrial core (the existing buildings and supporting infrastructure represent a prime
opportunity for reuse).

Based on the foregoing, the 1996 Reuse Strategy formulated a Master Plan which included the components
described in Table 1 below.

Tabl e 1 --- Master Pl an Devel opment Components
Proposed Use Area
Industrial Business Park 365acres
Theme Park 524acres
Sports Park 911acres
Nature Park 938acres
Infrastructure 15acres
Total: 2,753acres

The Industrial Business Park component of the Master Plan, which would be located in the central
portion of the NWIRP Calverton property, was proposed to be 365acres in size and would reuse the
existing building and support infrastructure from the vacated Calverton NWIRP facility. Parcelization of
the property within the Industrial Business Park component was encouraged to facilitate the
development of a variety of businesses and uses such as aircraft maintenance, a business incubator, and
movie production facilities.

A theme park district, approximately 524acres in size, was proposed to be located in the northwestern
portion of the NWIRP Calverton property, identified as Attractions, which would accommodate a
regional theme park ranging in size and attendance from 300,000 to 500,000 per 90-day season to a
nationally-affiliated park such as a Paramount or Six Flags with potential attendance in excess of 2.5
million per year. The existing 7,000-foot runway would be utilized for visitor parking for the theme
park. In addition to the theme park, a hotel and conference center and service retail uses were also
proposed as part of the theme park district.

On the eastern portion of the property, east of the 10,000-foot runway, a 911-acre sports park district
was proposed. A 6,000 - 8,000-seat stadium facility was the primary use in this area, utilizing the 10,000-
oot runway for parking. However, the Master Plan does not specifically advocate for once particular use,
allowing for flexibility in development of this district. Additionally, a smaller portion of the sports park
district would be dedicated to commercial uses.

4
In an effort take advantage of the natural features found at the NWIRP Calverton property, the 1996 Reuse
Strategy proposed 938acres of nature-park and recreational areas, located throughout the NWIRP
Calverton property. The Pine Barrens Core area, McKay Lake, a community park, a public golf course, a
buffer area constructed for the National Cemetery to the north, a recreation area located in the Industrial
Business Park, and an endangered species habitat area comprised the nature-park and recreational areas.

The 1996 Reuse Strategy identifies several potential business opportunities that could be taken advantage
of assuming the implementation of the Master Plan. These include:

Busi ness I ncubator: This was proposed as a catalyst for the development of agricultural,
aquaculture, and environmental industries, in order to complement the NWIRP Calverton propertys
East End location.

Fi l m and Producti on Studi os: Based on research undertaken in Phase One of the 1996 Reuse Strategy,
this business opportunity was identified as having great potential at the NWIRP Calverton property.

Raceway Proposal : A raceway complex was identified as a potential use at the NWIRP Calverton
property due to propertys suitable conditions for such a venue, such as the substantial buffers the
property offers as well as the existing runway infrastructure.

Phase Two of the 1996 Reuse Strategy also discussed the economic and fiscal implications associated
with implementation of the Master Plan. In summary:

Development of a theme park and/ or the raceway proposal would quickly stimulate the
development of secondary uses.

Under ideal conditions, the proposed Industrial Business Park would have attracted 50,000 square
feet of new industrial space per year, with an annual net leasing rate in the range of $3.50 to $5.50 per
square foot. By the fifth year of operation, net revenues were projected to be approximately $1
million per year.

Commercially-zoned land was projected to sell in the range of $25,000 to $45,000 per acre. Leasing
rates were projected to be approximately 10 percent above selling rates.

Generation of 3,000 full-time equivalent (FTE) jobs over a 20-year timeframe, including industrial jobs
and seasonal jobs would be associated with the theme park and/ or raceway.

The projected tax revenues were $3.2 million in property tax revenue, $10.7 million in sales tax
revenue, and $2.5 million in State income tax.
5
Phase Three
In the final phase of the 1996 Reuse Strategy, Phase Three, an implementation strategy for the Master Plan
was developed. Four separate strategies were developed in order to achieve realization of the Master
Plan, including acquisition, management, marketing, and investment. The primary elements of these
strategies, as articulated in the 1996 Reuse Strategy, are discussed below.

Acqui si ti on Strategy

The Acquisition Strategy consisted of the development of recommendations for site conveyance
mechanisms in order to allow for the efficient, productive, and successful transfer of the NWIRP
Calverton property from the U.S. Navy to the Town of Riverhead CDA. These recommendations
included:

The provision of regular access to the NWIRP Calverton property in order to allow the Town of
Riverhead CDA to show it to potential tenants and others with an interest in the property.

The U.S. Navy would continue maintenance of the site, estimated to cost approximately $3.5 million
per year, until conveyance to the Town of Riverhead CDA. During this interim period, the Town of
Riverhead CDA would be allowed to identify industrial tenants who would immediately occupy the
NWIRP Calverton property.

The U.S. Navy was to complete an EIS in accordance with the National Environmental Policy Act
(NEPA), assessing the environmental impacts of conveyance of the NWIRP Calverton property to the
Town of Riverhead CDA, as well as to evaluate environmental impacts of various reuse scenarios,
including the 1996 Reuse Strategy. The U.S. Navy would be responsible for any environmental
cleanup at the NWIRP Calverton property, as investigation led to the identification of soil and
groundwater contamination in several areas. Finally, it was recommended that the U.S. Navy
maintain and transfer all environmental permits associated with the NWIRP Calverton property at
the time of conveyance.

In order to expedite the conveyance of the NWIRP Calverton property, it was recommended that
non-contaminated areas be transferred first, while environmental cleanup was being undertaken in
contaminated portions of the property. Further, this would facilitate the parcelization of the NWIRP
Calverton property, which would be necessary to implement the Master Plan.

Management Strategy

The recommended Management Strategy of the 1996 Reuse Strategy sought to develop an approach for
how the Town of Riverhead CDA would manage the substantial amount of property. The primary goal
of the Management Strategy, as excerpted from the 1996 Reuse Strategy, was to help the Town of
Riverhead CDA:
6
meet head-on this new challenge i n such a way that development goals wil l be achieved without accountability
bei ng compromised. The rol e of the CDA as owner, developer and local redevelopment authority must be cl earl y
disti nguishable from the Town Board s rol e as revi ewer and protector of the publ ic trust. (Page 41)

To this effect, the 1996 Reuse Strategy made the following recommendations for a management structure:

The Riverhead Town Board maintains excl usi ve responsibili ty for the creation and implementation of the
[Planned Development Distri ct] which will provi de the framework for all development at the site.

The Town Board would create a successor [to] the Cal verton Joint Planning and Redevelopment Commission,
approving a charter for this advisory entity and specifying the qualifications and jurisdicti ons of members who
should serve for fi xed terms.

The Site Development Advi sory Commission (SDAC), successor to the Planning Commission, shoul d incl ude a
[diverse] professional representation to serve as a real estate and business advisory committee, provi ding a
review function for the Town Board/Community Development Agency with regard to pol i cy and operational
issues.

The primary objecti ve of the SDAC shall be to organize and recommend for implementation a seri es of actions to
initiate the operational phase of the reuse.

The SDAC woul d revi ew transactions, undertake preliminary negotiations if appropriate and provide
recommendations to the Community Development Agency regarding proposed uses and l ease agreements.

The SDAC woul d serve as an advocate for project support, as appropriate.

The Community Development Agency would retain personnel decision making authority, l ease approval and
operational contract authority.

In the absence of a master tenant/developer, the Community Development Agency woul d be responsi ble for the
following:

1. Contracting for operation of the industrial district by a single property management firm or multipl e
contractors.

2. Management of all marketing efforts undertaken by contract with a national real estate marketing
and/or brokerage firm or property development fi rm.

3. Contract for services and negotiable land transactions utilizi ng input from SDAC.

4. The Community Development Agency wil l pursue fundi ng sources for management, marketing and
infrastructure improvement to support redevelopment.

5. The Community Development Agency would conti nue liaison with the US Navy and other
government staffers regarding conveyance timing, closure and cleanup obli gations, and fundi ng
consi derations. (Page 42).
7

The Management Strategy also sets forth recommendations for the management of development of the
NWIRP Calverton property for two different scenarios: the Town of Riverhead as the Master Developer
or a private developer as the Master Developer.

Marketi ng Strategy

A Marketing Strategy was developed in order to promote the reuse of the NWIRP Calverton property.
To this end, it was recommended that a Development Advisor be put in place and charged with the
following responsibilities (Page 46):

Validate the Asset/Property Management System.

Assi st in Implementing the Master Land Use Plan.

Manage Proposed Short-Term Uses.

Market Developable Land Parcels.

Monitor Project Fi scal Integri ty.

The 1996 Reuse Strategy identified the most critical component of the site image as establi shi ngthe
character and scope of the fi rst tenants at the site. These anchor tenants will set the tone for future users (Page
46). The 1996 Reuse Strategy goes on to state the need for a separate, but coordinated, marketing strategy
for the three primary proposed districts (i.e., Industrial Business Park, Theme Park, and Sports Park).

With regard to the Industrial Business Park, the Marketing Strategy recommended the use of high-end
marketing materials; the potential creation of a Foreign Trade Zone at the NWIRP Calverton property;
pro-active marketing through the use of competitive incentives; and the use of initial tenants, such as a
business incubator and/ or a film production facility, to help recruit additional tenants, as they would be
natural business attractors.

Marketing recommendations for the Theme Park included outreach to leading theme park operators,
soliciting proposals from theme park operators, creating a friendly regulatory environment for the
development of such an attraction, and coordinating with other tourist destinations in the area (i.e.,
Splish-Splash, Tanger Outlets, Okeanos, etc.).

For marketing of the Sports Park and associated commercial uses, the 1996 Reuse Strategy recommended
expediting the evaluation of a raceway, developing the proposed golf course in concert with the
hotel/ conference center, working with the State of New York and Suffolk County on stadium outreach,
and marketing parcels located along the New York State (NYS) Route 25 corridor.

I nvestment Strategy

The final component of Phase Three, the Investment Strategy, focused on the financing of capital
improvements. Several guidelines were created to help shape this strategy, including (Page 51):
8

Minimize up-front expenditures by taking maximum advantage of Grumman/Navy infrastructure.

Link investment to commitments by major new users.

Use public dollars to leverage pri vate investment.

Preserve asset value with strategic improvements.

The 1996 Reuse Strategy identified long-term infrastructure improvement needs as part of the investment
strategy (Page 53), which included:

Water Suppl y: Development at the NWIRP Calverton property would significantly increase the
demand for potable water, which would necessitate the transition from using an on-site well system
to a regionally connected network, the Riverhead Water District.

Wastewater Treatment: Portions of the NWIRP Calverton property are served by a wastewater
treatment system. However, development of the NWIRP Calverton property in accordance with the
proposed Master Plan would create a demand on this system in excess of capacity. Improvements to
the existing system, or the construction of a new facility, would be required.

El ectri cal Energy: Competitive on-site generation and distribution of electrical energy is a possibility
at the NWIRP Calverton property in the event Long Island suppliers cannot provide service.

On-si te Roadway and Landscapi ng: Investment in internal roadway and landscaping
improvements, especially in the area of the proposed Industrial Business Park, would greatly
enhance the marketability of the NWIRP Calverton property.

Key Development Considerations

The 1996 Reuse Strategy identified the key development considerations for the Master Plan, including
(Pages 54-8):

Development of industrial jobs.

Attracting a theme park use to anchor the NWIRP Calverton property.

Determining the most appropriate lease and purchase structures.

Determining the most beneficial allocation of the rent and payments-in-lieu-of-taxes (PILOT)
revenue.

Assessing the value and demand of Pine Barrens Credits associated with the Pine Barrens Core
Preservation Area located on the NWIRP Calverton property.
9

Developing a long-term strategy for reuse of the existing runway infrastructure.

Development of not-for-profit uses, such as a railroad or aviation museum.

The 1996 Reuse Strategy identified goals in redeveloping the NWIRP Calverton property, developed a
reuse strategy containing three phases, and established a Master Plan for the property. The Town of
Riverhead Resol ution No. 572, executed July 16, 1996 through a vote by the Town of Riverhead Town Board
(Town Board), established that the Calverton Enterprise Park Reuse Plan (i.e., the 1996 Reuse Strategy)
was the preferred reuse alternative for the NWIRP Calverton property, pursuant to the requirements of
NEPA.

































\ \ NYLIDATA\ projects\ 28409.00 Calverton Re-Use Plan\ docs\ VARIOUS\ DSGEIS\ Appendices\ Appendices for Printing\ H\ Reuse Strategy Summary.doc
10